Commercial banks in Namibia experienced a notable decline in liquidity in July, with average holdings falling by N$274.98 million to N$5.80 billion, the Bank of Namibia (BoN) has reported.
This represents the lowest liquidity position since September 2024, down from N$6.07 billion in June.
According to the central bank, the month-on-month reduction was largely driven by the residual effects of corporate tax payments that were due at the end of June 2025.
“Liquidity in the banking sector declined during July 2025, primarily due to the latent impact of corporate tax outflows from June,” the Bank of Namibia said.
The current reserve level translates into 3.8 months of import cover, while excluding oil exploration and appraisal activities, import cover stood at 4.3 months.
Total official reserve assets amounted to N$58.09 billion, with foreign currency reserves at N$53.95 billion. Securities accounted for N$31.92 billion, while currency and deposits with various banks and institutions totalled N$22.04 billion.
Namibia also held N$3.7 million in IMF reserve positions and N$4.13 billion in special drawing rights.
Short-term foreign currency outflows remain significant, with principal repayments of N$17.34 billion and interest payments of N$1.89 billion due within a year. Contingent liabilities include principal of N$842.7 million and interest of N$599.5 million.
The reserves are predominantly held in US dollars, euros, Chinese yuan, yen, and British pounds, in line with international settlement requirements and the IMF’s SDR basket.
Meanwhile, Namibia’s international reserves contracted during the month, falling by N$1.54 billion to N$58.1 billion at the end of July. This represents a 2.6% decrease from the N$59.6 billion held at the end of June.
The BoN attributed the decline to higher net ZAR outflows from commercial banks for portfolio investments abroad.
“International reserves fell as a result of increased net outflows, particularly in ZAR transactions linked to portfolio investments outside Namibia,” the Bank of Namibia said.
